What Bank of America Offers

Bank of America offers mortgages nationwide. Because of its competitive rates, convenient application options and low down payment loan products, Bank of America has earned a spot on several of our best mortgage lender lists:

Loan Types

Bank of America offers these mortgage types:

  • Fixed-rate mortgage
  • Adjustable-rate mortgage (ARM)
  • Affordable Loan Solution
  • FHA
  • VA
  • Refinance
  • Home equity line of credit (HELOC)
  • Cash-out refinance
  • Jumbo
  • Doctor loan

If you want a USDA loan, you’ll need to look elsewhere. Also, BofA doesn’t offer non-qualified mortgages for smaller loans, which can help borrowers who have outside-the-box financial situations.

Loan Minimum

Bank of America doesn’t have a loan minimum for a first mortgage, according to a company spokesperson. Being able to get a small mortgage loan isn’t a given, but it’s important for people who want to purchase, renovate or refinance less-expensive properties.

Loan Maximum

Bank of America’s maximum mortgage size is $5 million with a jumbo mortgage. You can apply for a larger, custom program mortgage if you’re a Bank of America wealth management client, according to a company spokesperson.

Try Forbes Advisor’s mortgage calculator to estimate how much you can afford.

Minimum Borrower Requirements

All lenders and mortgage types have minimum borrower requirements. Here’s what to expect with Bank of America.

Minimum Credit Score

Bank of America doesn’t disclose its minimum credit score requirements. Here are the minimum credit scores that lenders typically require for certain loans:

  • Conventional. 620
  • FHA. 580
  • VA. 580
  • Jumbo. 680

Debt-to-Income Ratio

Bank of America doesn’t disclose the maximum debt-to-income (DTI) ratio it allows. Typically, you’ll need a DTI below 50% to get approved for a mortgage. However, you’ll have a better chance of qualifying with a DTI below 36%. A higher ratio may be okay if you’re financially strong in other areas, such as your credit score, down payment or, in the case of a doctor loan, your income potential.

Minimum Down Payment

With any lender, the minimum down payment varies by loan type and amount. Here’s what we know about BofA’s minimums.

Loan Type Minimum Down Payment
Fixed rate
5%
ARM
5%
Affordable Loan Solution
3%
FHA
Not disclosed (typically 3.5%)
VA
0%
Jumbo
5%
Doctor

3% on mortgages up to $850,000
5% on mortgages up to $1 million
10% on mortgages up to $1.5 million
15% on mortgages to $2 million

What Fees Will You Pay?

All mortgage lenders charge fees, but some charge higher fees than others. Here’s what you can expect to pay when getting a mortgage with Bank of America.

Closing Costs

Bank of America’s closing costs can range from 3% to 7% of the loan amount. This range is higher than the industry average, which is typically cited as 2% to 5%.

The most expensive mortgage closing costs will usually be the lender’s origination and underwriting fees, local real estate taxes and any points you pay to lower your interest rate.

Bank of America Closing Cost Estimate

You can estimate your closing costs in detail with Bank of America’s closing cost calculator. Few lenders that we’ve reviewed offer this level of transparency on their websites.

While we don’t know how the calculator’s results stack up against what you’d see on an official loan estimate, its breakdown of points, the lender’s origination fee, and estimated third-party fees for everything from a home appraisal to title endorsements seem plausible, based on our experience.

The calculator will also tell you if you might be eligible for closing cost assistance based on the information you enter.

Sample Closing Cost Breakdown

Here’s what you might pay in closing costs for a 30-year, fixed-rate mortgage to buy a $400,000 home with 5% down in a suburb of St. Louis without closing cost assistance.

Category Fee Estimated Cost
Lender Fees
0.915 points
$3,477
Origination
$1,130
Third-Party Fees
Appraisal
$660
Credit report
$36
Tax service
$91
Flood certification
$4
Life of loan flood monitoring
$8
Closing/escrow
$535
Lender’s title insurance
$300
Mortgage recording
$180
Owner’s title insurance (optional)
$74
Prepaid Items
Interest (15 days)
$1,093
Homeowners insurance
$1,600
Escrow Account
Homeowner’s insurance (estimated 2 months)
$267
Mortgage insurance (estimated 2 months)
$0
Property taxes (estimated 2 months)
$1,052
Total
$10,507 (2.765% of $380,000 loan)

How To Apply for a Bank of America Mortgage

You can get prequalified, preapproved or apply for a Bank of America mortgage online. You can also do these things over the phone or in person.

Prequalification can take as little as one hour but only gives you a general idea of what you can borrow. It may be helpful when you’re just starting to think about becoming a homeowner.

Getting preapproval can take up to business 10 days and involves a more thorough review of your finances. It’s good for 90 days but is not a commitment to lend.

You can’t lock your rate until you have a home under contract. You must lock your rate at least 10 days before closing. A typical rate lock with BofA is 45 days for a purchase loan and 60 days for a refinance.

If you need preapproval fast, it doesn’t hurt to ask a BofA loan officer if they can accommodate your request. But you may want to hedge your bets by also applying with lenders that promise speed, such as Better Mortgage and New American Funding.

What To Do If You Get Turned Down

If you don’t get approved for a mortgage with Bank of America, don’t give up. Many people get rejected for a mortgage several times before they get approved. Here’s what to do if you get denied:

1. Apply with multiple lenders. Even if one lender denies your mortgage application, another may approve it.

2. Work with a mortgage broker. At no cost to you, a broker submits applications to multiple lenders on your behalf. An excellent broker will also know which lenders are most likely to approve an applicant like you.

3. Find out why you were denied. A lender who denies your application has to tell you why. This information can reveal exactly what you need to work on to become a stronger applicant.

4. Work on your credit score. A few months of paying down high-interest debt and making on-time payments could boost your credit score and decrease your DTI ratio.

5. Team up. Applying with a co-signer or co-borrower could help you get approved. But choose your co-signer wisely. Dealing with the fallout if your financial circumstances worsen or your relationship sours could make both parties regret this decision.

What People Are Saying About Bank of America

Mortgage customers filed 2,758 complaints about Bank of America with the Consumer Financial Protection Bureau (CFPB) from July 2020 through June 2023. Complaints spiked in September 2020 and have gradually trended downward since then.

About half of the complaints cited trouble during the payment process. Complaints about struggling to pay the mortgage, applying, refinancing or closing were the other big areas. BofA provided a timely response to all but 11 CFPB complaints.

On Zillow, Bank of America had 4.8 out of 5 stars in July 2023, with more than 13,000 reviews. Several recent comments praised the company’s competitive rates and how helpful their loan officer was throughout the process.

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Methodology

We graded Bank of America based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.

Our scoring method is broken down as follows:

  • Interest rate.20%
  • Loan options. 20%
  • Time to close.20%
  • Accessibility. 20%
  • Customer service experience.20%
  • Bonus points.Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.